Quote:
Originally Posted by opendoor
$8.2B (60% increase). So it's high, but not insanely so historically. The average 5-year increase in US's M2 in the last 60 years has been about 45%. With a couple of years of more modest growth, they'll be right back on their historical trajectory.
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But it does explain why Canada would have higher inflationary pressure if your biggest trading partner has a much higher than normal money supply over a 5 year period.
The issue in Canada wasn't the COVID support, but the billions in other spending that needed to be kept in line, (arguments for & against) but the US is absolutely ridiculous in the amount of money they created and pumped into the economy. Doesn't take a fancy degree in economics to realize that it'll eventually lead to a massive problem.